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Who hasn’t heard of the saying “don’t put all your eggs in one basket” a phrase commonly attributed to Miguel de Cervantes (1547-1616), or more precisely to Sancho Panza in his novel Don Quixote. This very clear and figurative translation, common to the Anglo-Saxon world, masks the simple but earnest advice: “no aventurarse todo en un día”; one should not dare to do everything in one day. Or stake everything on one card. According to Markowitz (Portfolio Selection, 1952), the best way to achieve this aim is by assembling a diversified (real estate) portfolio. In this case, both the acquisition of individual properties and the acquisition of entire real estate portfolios come into question. If a larger number of properties are traded within a legal transaction, this is referred to as a portfolio transaction, in the course of which the properties are appraised either individually or as a whole – depending on the client’s preferences or legal requirements. The classic portfolio appraisal is one of the group appraisal methods (single row calculation), where it is not possible to determine the market value of an individual property. This is partly due to the portfolio-related risk considerations of the market (diversification effects, etc.), which can lead to a deviation between the sum of the individual values and the appraisal of the portfolio as a whole. In return, however, more cost-effective and quickly implementable methods can be used here, such as Pareto, package or group appraisal, random (Monte Carlo) and hedonic methods. A property inspection is generally not carried out, or only randomly. However, it should be noted that the above-mentioned appraisal methods are not legally permissible in many cases. One example is the appraisal of open public investment assets, § 169 (1) KAGB requires the determination of the respective market values and § 231 (2) section 2 KAGB requires the personal inspection by the appraiser.
We understand portfolio appraisal to normally mean the appraisal of the commissioned real estate portfolio at the individual property level. A site inspection is mandatory in this case. In addition to a meaningful portfolio overview, you will receive a comprehensive appraisal (§ 194 BauGB) for each property. This means that nothing stands in the way of a separate sale of individual properties. Upon request, we also prepare classic portfolio appraisals. If you have any questions, please contact us!